CVirotec International Ld Headline Sale of laboratory business...

CVirotec International Ld

Headline Sale of laboratory business
09-Mar-05





Virotec International Ld
09 March 2005

9 March 2005
SALE OF ANALYTICAL LABORATORY SERVICES BUSINESS

Virotec International Ltd (ASX/ AIM: VTI) advises that it has sold it's
analytical laboratory services business, trading as ViroLab Analytical Services,
to SGS Australia Pty Ltd, a subsidairy of the Switzerland based SGS Group.

Virolab is a NATA accredited laboratory, specialising in advanced laboratory
analysis of low level contaminants and other chemicals in petroleum,
environmental, agricultural, food and textile products.

As noted in the Company's 2004 Annual Report, this business was outside the
Virotec Group's core business and as a result it was determined to dispose of
the business to enable Virotec's resources to be focussed on its core business,
being the commercialisation of its technologies. The ViroLab business has
produced mixed results for Virotec over the past few years, most recently
recording a loss in the 2004 financial year of approximately $95,000 on a fully
costed basis (including depreciation). Consideration for the sale is $350,000
payable in cash which will be utilised for general working capital purposes. The
sale will not have a material effect on the Company's financial results for the
year ended 30 June 2005.

SGS intend to continue to operate the ViroLab business from its existing
location with the existing team.

For any queries regarding this transaction please contact Angus Craig on
telephone +61 7 5530 8014. For more information on Virotec please visit
www.virotec.com .